Meta has introduced new rules around gambling advertising that place increased demands on companies to meet stricter regulatory standards.
The new terms were updated on Meta’s Transparency Center and require companies to provide proof of valid gambling licenses in the locations where they are running ads.
The terms state, “To run ads that promote online gambling and gaming, advertisers will need to request authorization from Meta through the Authorizations and Verifications tab in Meta Business Suite and provide evidence that the gambling activities are appropriately licensed by a regulator or otherwise established as lawful in the territory they want to target.”
Ads Not To Target Minors
Meta also stresses that gambling ads are not allowed to target minors, stating, “At a minimum, ads may not target to people under 18 years of age”.
This has already been a policy at Meta, but a 2022 investigation by Reset Australia found that Facebook’s algorithms were recommending gambling content to teen accounts despite platform policies.
The increased checks around authenticating valid licenses and approving gambling ads could lead to a reduction in the number of ads seen by minors on the company’s platforms.
Many states already have strict rules on gambling advertising that targets minors, and New Jersey lawmakers have introduced a bill to place further restrictions on ads targeting under-21s.
Social Casino Rules
The rules allow the promotion of free-to-play social casinos; however, the terms state that “if the game allows virtual prizes to be bought or sold between players within the game and/or on secondary markets for money or money’s worth” then this will be classified as gambling and companies will have to show they are properly licensed.
This has the potential to restrict social and sweepstakes casinos, but it would come down to Meta’s interpretation of whether sites that claim to offer free-to-play casino games are exempt from the increased burden of proof that applies to gambling companies.
The rules go on to say that “If an advertiser wants to run ads that promote online gambling and gaming where anything of monetary value is required to play and anything of monetary value forms part of the prize, they’ll need to request an initial authorization from Meta.”
With platforms that offer free-to-play games not required to request authorization, it is unclear how Meta will determine which sites are free-to-play and which sites require money to play.
The gray area that sweepstakes operate in has caused many states to make explicit legislation to target the platforms. Montana, Connecticut, New York, New Jersey, and Louisiana passed bills banning sweepstakes this year.
However, Louisiana’s governor elected not to sign off on the legislation, commenting that the state already had sufficient authority to clamp down on unregulated gambling. Louisiana’s Attorney General has since declared that sweepstakes casinos are illegal under existing laws.
Influencers Also Face New Regulations
The new rules also apply to influencers and content creators. If the ad is published directly by the gambling operator and the creator is only tagged or mentioned, no additional authorization is required.
However, if the creator themselves publishes the ad, they must go through the full approval process, register as an affiliate, and provide a signed letter from both parties confirming the commercial partnership.
The new regulations are effective immediately.
Adam is an experienced writer with years of experience in the gambling industry. He has worked as a content writer and editor for five years on sites such as Oddschecker, CoinTelegraph and Gambling Industry News, bringing excellent knowledge of the world of sports betting and online gambling. Adam focuses on emerging stories in the ever changing landscape of betting in the US. Read the latest on prediction markets, changing legislation, and sweepstakes.
